ASIA BRAND FOOTPRINT 2019 - Building a Sustainable Brand A ranking of the most chosen consumer brands - Kantar

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ASIA BRAND FOOTPRINT 2019 - Building a Sustainable Brand A ranking of the most chosen consumer brands - Kantar
ASIA BRAND
  FOOTPRINT 2019
  A ranking of the most chosen consumer brands

  Building a Sustainable Brand

                           RECIPE FOR BRAND      ASIA MARKET
ASIA CEO FOREWORD
                            GROWTH IN ASIA        FEATURES
ASIA BRAND FOOTPRINT 2019 - Building a Sustainable Brand A ranking of the most chosen consumer brands - Kantar
ASIA BRAND FOOTPRINT 2019 - Building a Sustainable Brand A ranking of the most chosen consumer brands - Kantar
ASIA BRAND
FOOTPRINT 2019
A ranking of the most chosen consumer brands

Building a Sustainable Brand
ASIA BRAND FOOTPRINT 2019 - Building a Sustainable Brand A ranking of the most chosen consumer brands - Kantar
TA B L E O F C O N T E N T S

What’s inside

01                                  PAGE 5        03                                     PAGE 11

Asia CEO Foreword                                 Asia Market Features
                                                  • LOCAL MARKET’S TOP 10 RANKINGS
                                                  • THE STORIES AND GROWTH LEVERS BEHIND

02
                                                    THE BRANDS

                                    PAGE 6            11      CHINA MAINLAND
                                                     19       INDONESIA
                                                     24       KOREA
Recipe for Brand Growth in Asia                      33       MALAYSIA
                                                     38       PHILIPPINES
                                                     44       TAIWAN
                                                     52       VIETNAM

                  Consumer Reach Points (CRPs) explained

                                X                                 X
      POPULATION                      PENETRATION                         CONSUMER
                                                                           CHOICE
    Number of households in a       % of households buying your       Number of interactions with
            country                           brand                   your brand across categories
                                                                               in a year

ASIA BRAND FOOTPRINT 2019                                                                            4
ASIA BRAND FOOTPRINT 2019 - Building a Sustainable Brand A ranking of the most chosen consumer brands - Kantar
A S I A C EO F O R E W O R D

01                                                                                          Marcy Kou
                                                                                             CEO, Asia
                                                                                         Worldpanel Division

ASIA CEO FOREWORD
Asia is truly within the age of the millennials, centennials, and ageing silver
generation, with countries like China Mainland, Korea, Indonesia, and Vietnam
proactively capitalizing on the revenue potential posted by the consumers in
these segments.

While diverse and fragmented with a hotpot for different   These are what we deem as the recipe for growth
cultures, growth rates, and demands, these regions         and success for brands to achieve sustainability and
are often brought together by a few common themes          maintain consistent growth.
centered around the consumers’ needs. The themes
relate to health and safety, convenience, happiness,              In the end, growth and success are
and the complete shopping experience that is often                not just about making a significant
omni-channel.
                                                                  impact on the market, but how to
Consumers are becoming more discerning, informed,                 build a sustainable brand that can
and well-traveled. As a result, they are exposed to               evolve through generations and
more options, ideas, products, and perspectives. All
this influences, shapes, and changes their perception
                                                                  ever-changing consumer needs.
and demands to where making a purchase is not
just about a product, but what else the brand offers,      With that, it is my hope that you enjoy the inaugural
including a complete shopping experience for them as       issue of our Asia Brand Footprint and that you find the
a consumer.                                                shared insight interesting and impactful.

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ASIA BRAND FOOTPRINT 2019 - Building a Sustainable Brand A ranking of the most chosen consumer brands - Kantar
R EC I P E F O R B R A N D G RO W T H I N A S I A

02
RECIPE FOR BRAND
GROWTH IN ASIA
2.1 EVOLVING NEEDS OF THE CONSUMER
2.2 EVOLVING THE SHOPPING EXPERIENCE

2.1 EVOLVING NEEDS OF THE CONSUMER
In Asia, over the last decade or so, consumer trends and focuses have shifted
to reflect the following three needs around health and safety, convenience,
and happiness.

HEALTH & SAFETY

Asian consumers are becoming more cautious of their             wellbeing amidst the issues and climate changes that are
purchasing choices in terms of their health benefits            occurring at an alarming rate. For instance, the fragmented
and their role in either circumventing diseases or in           region of Asia, due to the differences in geography,
supporting current health conditions.                           demographics, culture, landscape, and environmental
                                                                resources, top tier or urban cities versus lower tier or rural
This is related to their place of living, whether they affect   cities are usually at different stages of development in
environmental sustainability, pollution, and the planet’s       terms of their concerns, mindset, and way of living.

ASIA BRAND FOOTPRINT 2019                                                                                                   6
ASIA BRAND FOOTPRINT 2019 - Building a Sustainable Brand A ranking of the most chosen consumer brands - Kantar
In this sense, the concept of health and safety is evolving   to consume and digest (softer texture and easier to
at stages defined by consumers in accordance to their         chew), such as powder milk, soy milk, rice porridge,
lifestyle and stage of life needs.                            etc.. For example, Dr. Chung’s Foods came out with
                                                              Vegemil 5060 Soymilk for Seniors while Daesang Wellife
In top tier Asian cities, consumers are usually looking       offers Newcare or Pulmuone, as well as other softmade
for non-additive, high quality, organic, or plant-            products.
based ingredients, be it in the food or beverages they
consume, personal or beauty care, and sometimes even          In the beauty and personal care industry, we observed
the household products that they use.                         a vast range of products that protect consumers’ skin
                                                              from pollution – a small but growing sector alongside
For example, in China Mainland ’s market, there is a          consumers’ growing awareness of health and wellness.
new concept of paper which is unbleached and made
from bamboo fiber. With its “bamboo” raw material,            This is coupled with interest towards anti-aging and
the product is considered as an eco-friendly and non-         harmful UV ray prevention, leading to the growing
pollution product that offers a functional benefit of         popularity of deep cleansing oil and micellar water for
anti- bacterial and, thus, is rapidly winning over Chinese    instance. Today, consumers’ skincare routine is getting
consumers.                                                    more advanced and complex. Consumers include an
                                                              additional step to deep clean their skin, which helps to not
An increasing number of millennial and centennial             only remove makeup, but to strip away pollution particles.
consumers are also looking at the origins or source of the
ingredients and products from either an environmental,        Therefore, we are beginning to see more “anti-pollution”
sustainable, or personal anti-aging perspective.              and “natural ingredients” being promoted upfront
                                                              as an additional benefit in beauty products such as
The silver, or aging, population of people in their 50’s      sunscreens, masks, serums, and moisturizers for the
and beyond is also a growing network of high potential        consumers’ growing needs for efficacy care.
spenders who are looking at whether these products will
help with life and youth preservation or to boost immunity    This also explains the growing concerns against plastic
to diseases commonly associated with old age.                 use and the push for biodegradable packaging,
                                                              which has witnessed the use of banana leaves by
As such, nutritional and dietary supplements that offer       the supermarket retailers in Indonesia, Thailand, and
glucosamine, pro-biotics and collagen ingredients,            Vietnam, such as like Big C, Lotte Mart, Saigon Co.op,
low-sugar, low-fat, and high-calcium in their food            Rimping Supermarket, and Bintang Supermarket. These
and beverage products, including dairy products, are          retailers package fruits and vegetables in banana leaves
at the top of their shopping list. For example, in China      instead of cling wrap or plastics, which has resulted in
Mainland alone, the market size for these shoppers is         positive brand coverage across both traditional and
anticipated to grow from USD 305 million in 2018 to           social media platforms. Other Asian countries like China
USD 405 million by 2025.                                      Mainland, Korea, Malaysia, Philippines, and Taiwan are
                                                              also beginning to ban or reduce single-use plastic bags
In Taiwan, Kuang Chuan Tea Time, known for its focus          in supermarkets and stores.
on quality and safe origins, launched a new Ready-to-
Drink (RTD) product line that contains 60% fresh milk         We can clearly see the emergence and multiplication of
and less additives to ride on the “health trend” in the       different concepts behind the Health & Safety umbrella
food market, while Fresh Delight launched Calcium-plus        in the region, such as food safety, nutritional benefits,
and other vitamin-enhanced milk products to cater to          sport and exercise, environmental sustainability,
families with young children and the aging silvers.           pollution, origins of the product, and the wellbeing of the
                                                              end user. We notice the concepts becoming less generic
In Korea’s food market, products targeted at aging            and more functional and specific on the benefits that
seniors are usually high in protein, nutritious, and easy     consumers can experience.

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ASIA BRAND FOOTPRINT 2019 - Building a Sustainable Brand A ranking of the most chosen consumer brands - Kantar
R EC I P E F O R B R A N D G RO W T H I N A S I A

CONVENIENCE

Consumers are increasingly strapped for time and               Although the silver generation’s current online
patience, especially younger people, thus demanding            consumption is still modest in most markets, as
for easy-to-use, purposeful products and packaging             compared to the millennials and centennials, this is set
that can accommodate their needs, as well as                   to change rapidly in markets like China Mainland, where
channels that give them the fastest and easiest access         mobile device ownership in urban seniors over 60 has
to these products.                                             reached 86.7% and total online shopping has reached
                                                               41.8% in 2018 versus 6.9% across total channels.
Additionally, they gradually become accustomed to
pay more for convenient options tht simplify their lives.      Additionally, businesses now increasingly use digital tech
The question all businesses should answer is how they          in both marketing and distribution, which enables us to
can help their customers save time to enjoy life more          provide a personalized experience, create retargeting
and live a better life. We found among growing brands          campaigns, and provide quicker access to consumers.
that they always find ways to offer consumers greater
convenience. As a result, they can win consumers’
hearts and sustain a healthy growth regardless of                 1     TECHNICAL DEVELOPMENT:
whether the market is on an upward or downward trend.                   Quick delivery service or convenient payment
                                                                        methods, including Korea-Coupang, Naver Store,
An example of a convenience-oriented product is the                     Market Kurly, China Mainland-Taobao, Alibaba,
capsule format detergent that simply goes into the                      and more.
machine with the clothes. Another is the detergent that
is designed for the rainy season with the message to not
                                                                  2     SOCIAL MEDIA MARKETING:
                                                                        Key Opinion Leaders (KOL) and a new technical
leave a ‘wet clothes smell.’ In the case of Ariel in Taiwan,
                                                                        approach of selling products, for example, through
this brand provides a solution for laundry in humid
                                                                        Instagram, Facebook shop, or livestream shopping.
weather, which is a major concern among Taiwanese
                                                                        This provides more convenience for customers in
housewives.
                                                                        terms of experiencing the products indirectly (KOL)
                                                                        and getting easier access to diverse products
Across the region, instant foods like snacks, cereal, rice
                                                                        through social network shops by simply looking at
soup, or convenient cooking aids, such as sauces and
                                                                        pictures and videos.
meal makers, are the products achieving growth when
time becomes more precious than money.
                                                                  3     AD TARGETING AND RE-TARGETING
                                                                        DRIVEN BY CONSUMERS’ ONLINE
In addition to the “easy-to-use” product, which brings
                                                                        SEARCH BEHAVIOR:
specific and relevant functions to the consumers, it’s
                                                                        Searching for milk powder for kids, several pop-
also about the product’s “easy access to information.”
                                                                        up ads of baby diapers, or relevant baby items will
This includes channels of distribution and media that
                                                                        appear in front of our screen just a few minutes later.
gives to the consumers OnDemand access to the
products that will create the desire of “I want it now!”

Thanks to technological advancements and the increase          This approach is more efficient than before, as consumers
of internet usage across the region, the line between          can see and seek out a variety of information or products
online and offline is becoming increasingly blurred.           that they are interested in or intend to buy with just a
Many brands are now moving to online and expanding             click. In this area, key opinion leaders play a critical and
their digital presence to be able to meet consumers            convenient role on social media for their followers, where
wherever they are and whenever they want. There have           they share their experiences toward products and their
been a lot of social media campaigns and constant              benefits. For example, reviews by key opinion leaders or
communication from brands to keep their customers              social media influencers of new launches with promotion
engaged.                                                       codes and direct link to purchase.

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ASIA BRAND FOOTPRINT 2019 - Building a Sustainable Brand A ranking of the most chosen consumer brands - Kantar
HAPPINESS

Often time, shopping is about satisfaction and instant           well with a special occasion they have in mind or special
gratification, thus, consumers are looking for a “feel-          information associated with the product that would
good” mentality when they consciously choose one                 encourage influencers to share it with their network
brand over the other. Furthermore, the ‘one fit for all’         of friends and family, potentially immortalizing the
concept of mass production is transitioning into one fit         product on social media.
for one of personalization.
                                                                 An example of special packaging is one that can be
Brands need to cater to the varying needs that arise for         used as part of the occasion they are celebrating or
different occasions and purposes and give influencers a          a mention of a tie-up with a social enterprise on the
compelling reason to choose their products over their            product packaging that they would be proud to be
competitor’s. This can be a specific packaging that goes         associated with and to share on social media.

    An outstanding case for the happiness image is Coke.         on ‘Small but Certain Happiness’ and connotes ‘present,’
    Following its successful 2014 “Share a Coke” campaign,       ‘trivial,’ and ‘frequent happiness’ types of consumption
    Coke continued to acquire great attention in 2018 from       behavior. In their case, they focus on ‘delicious health’ as
    not only football fans, but from everyone around the         an ideal brand value more than anything else in the Home
    world through its World Cup “#pickyourteam” and              Meal Replacement (HMR) category.
    “shareyourscoreprediction”campaign. The campaigns
    went viral via social media, which helped Coke stay on top   Moreover, in the beauty market, we are seeing more
    of consumers’ minds in terms of sharing happiness and        customized products that can be personalized by the
    having fun together.                                         consumers to mix and match or a service to provide you with
                                                                 a prescribed formula to fit your skincare needs. Recently,
    Another good example is Indomie, which has cleverly          even make-up has started embracing diverse skin colors,
    positioned its TV and video-based ads to emphasize its       types of finishes (look), and textures to help customize a
    presence throughout Indonesia, along with the multiple       look that’s suited for certain occasions or in accordance to
    occasions where one can enjoy the signature taste of         one’s preference.
    Indomie. A very good example of this is their “Dari Sabang
    Sampai Mera uke (From Sabang to Merauke)” ad that            Clio in Korea, for example, successfully attracted buyers in
    highlighted the many people and many occasions for           the millennial generations between the ages of 15 and 35
    Indomie across the archipelago.                              in 2015, when they launched “Tinted Tattoo Kill Brow” and
                                                                 helped to expand the eyebrow market pie, which was highly
    Daesang Corporation also capitalized on the growing          niche at that time.
    consumption of the “me” trend in Korea, which focuses

                                                            • Food safety
                                            HEALTH & • Concerns on pollution, sustainability
                                              SAFETY • Prevention – lifestage & lifestyle

                 HAPPINESS                                                           CONVENIENCE
                 • Fun, pleasure                                                    • Simple to use
                 • Entertaining                                                     • With greater efficiency
                 • Moments of memories                                              • Instant access

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ASIA BRAND FOOTPRINT 2019 - Building a Sustainable Brand A ranking of the most chosen consumer brands - Kantar
R EC I P E F O R B R A N D G RO W T H I N A S I A

2.2 EVOLVING THE SHOPPING EXPERIENCE
Shopping has evolved over the last decade to go beyond just functional
buying experiences to something more meaningful and engaging.
This is partly due to the surge of distribution
channels, both online and offline, as well as a          Watsons – A health and beauty retailer is also a good example
more conscious and demanding consumer, as                to demonstrate the enhancement of shopping experiences
previously mentioned. Therefore, we also see more        both in-store and online. The Watson store in Hong Kong
retailers and manufacturers working together             utilized advanced image technology to offer customers a skin
to create new, exciting, and unique experiences          analysis service with tailored product recommendations. In
for consumers to ensure they capitalize on every         China Mainland and Taiwan, the retailer leveraged “WeChat”
stage of consideration and avoid missing out on          and “Line” to create a better online and offline experience. This
any potential opportunity to promote their brand,        allows consumers to recommend and sell Watsons products to
push their products, and increase their presence in      their social media followers with “Watsons Mini Store.” It also
the marketplace.                                         enables consumers to make mobile payments conveniently
                                                         both online and in-store with “Watsons Pay” via a Line account.
The millennials and centennials place more
emphasis on a sense of ‘belonging’ and being part        Another illustration is the development of unmanned stores
of, or even at the forefront of, setting the trend. In   from North to Southeast Asia, led by technology/retail
contrast, the aging silvers, especially in countries     giants such as Alibaba and JD.com. These new automated
like Korea and Taiwan, are more conscious                store formats use innovations such as facial recognition,
regarding being referred to as “seniors” and would       personalized recommendations and promotions, as well as
be likely to avoid products with an overtly ‘senior’     digital payments and RFID scanners to provide consumers with
branding and messaging behind it.                        a seamless shopping experience.

It’s not just about the channels or the products         Oreo also used the theory of gamification to engage their
themselves in this case but rather the complete          customers by running an Oreo DJ mixer. In China Mainland,
shopping experience and being present in the             they ran a music billboard chart contest, ‘The DJ Mixer by
moment, be it a pop-up store, an interactive             OREO,’ that turned any standard Oreo sandwich cookie into
display for instant photo-taking, or a trial beauty      a musical device that consumers could enjoy by placing their
counter for consumers to try and share their             OREO cookies on the DJ Mixer turntables and mix up over 200
products for free.                                       song combinations as they took a bite.

Therefore, purposeful content is key to ensure that
consumers feel engaged, involved, and encouraged
to try, buy, and share. Only then will brands thrive     TECHNOLOGY,                DATA         AND          DIGITAL
in this digital age of new retail experiences.           CONNECTION

Examples include a tie-up between Tiffany and
a popular bakery in Japan and Singapore to
offer a Tiffany-themed pop-up café and plenty                     PLACES
of Instagram and Facebook-worthy sharing
moments.

                                                                                 CONSUMERS

                                                                                                      PRODUCTS

ASIA BRAND FOOTPRINT 2019                                                                                                10
03
ASIA MARKET
FEATURES
• LOCAL MARKET’S TOP 10 RANKINGS         CHINA MAINLAND
• THE STORIES AND GROWTH LEVERS BEHIND   INDONESIA
  THE BRANDS
                                         KOREA
                                         MALAYSIA
                                         PHILIPPINES
                                         TAIWAN
                                         VIETNAM

11
03
ASIA MARKET FEATURES

CHINA MAINLAND

ASIA BRAND FOOTPRINT 2019   12
A S I A M A R K E T F E AT U R E S

Top 10 most chosen brands in CRP
                                                                               Penetration %       Consumer
     2018 Rank Brand                                           CRP (M)             2018           Choice 2018
            1 Yili                                                1275              90.9                7.5

            2 Mengniu                                             1053              88.1               6.5

            3 Master Kong                                          850              80.8               5.6

            4 Haday                                                520              73.3               4.0

            5 Want Want                                            453              64.9               3.7

            6 Shuanghui                                            430              59.7               4.1

            7 Bright                                               388              38.4               5.4

            8 Liby                                                 384              66.5               3.1

            9 Nongfu Spring                                        368              59.3               3.5

           10 Uni-President                                        361              57.2               3.5

          Food Sector

The consumers’ ever-changing life style is constantly     all examples of how brands leverage NPD to meet the
shaping their purchase behaviors: two salient features    more complex consumer needs, such as health and
observed in the food category in recent years are         high quality, as well as new younger demographic. But
fewer shopping occasions and trading up product           innovation alone is not quite enough for a strong CRP
choices.                                                  gain. In fact, 7 out of the 9 top rising food brands have
                                                          grown their core products, the most commonly seen
Reasons behind this are, as Feng Guosheng, Toly Food’s    method being optimizing the pack size portfolio of
market director has said, more personalized consumer      core products to reach more consumer moments – 1L+
needs and more product choices that are shifting          pack from NFSQ for in-home family usage, such as
from functionality to better quality. These factors       cooking or boiling tea, and the tetro top package
make today’s food sectors all the more challenging        of Ambrosial from Yili for the increasing demand
to manufacturers. But how you view such changes will      of convenient packaging. While we are sorting these
define how you embrace new opportunity. Out of the 10     growth levers, it is important to mention that this
top rising FMCG brands, 9 brands are in the food sector   perhaps would not work or work as well without strong
and demonstrate to the market that there is always        media support. VTM water proves this to be true. In
opportunity in an increasingly challenging market.        the summer of 2018 the product was sponsored by
Two commonly observed growth levers for these top         NFSQ in the phenomenal IP Idol Producer, which drove
rising brands are more moments and an expanded            young people to purchase an abundance of VTM water
demographic – they launched NPDs or continuously          in support of his /her favorite idol. Understanding
invested in NPDs in 2018 to make innovation an organic    consumers’ needs and thoughts are not enough
contribution to the brand portfolio. Zhi Xuan soybean     anymore. You must have a firm understanding of what
milk from Yili, and renovated Vitamin Water are           your targeted consumers are seeing.

13
A S I A M A R K E T F E AT U R E S

Top 10 growing brands in CRP
                                                                                 Penetration %        Consumer
  2018 Rank Brand                              CRP (M)        CRP Growth %           2018            Choice 2018
           23 Coca-Cola                           223                9.5              44.0                2.9

            9 Nongfu Spring                       368                9.5              59.3                3.5

          26 Luhua                                202                6.2               41.6               2.5

            4 Haday                               520                6.0              73.3                4.0

           21 Taoli                               233                5.9               27.2               4.7

           17 Oreo                                258                5.2              48.8                3.0

            1 Yili                               1275                5.1              90.9                 7.5
          44 Liushen                              136                4.6              36.7                2.1

           32 C'estbon                            175                4.3              34.3                2.9

           31 Lee Kum Kee                         184                4.1              38.8                2.7

         Homecare                                                    Shampoo and Personal

As consumers look for convenience in family homecare        As young Chinese consumers value personal appearance
products, their shopping occasions grow fewer, while        and hygiene, they continue to purchase more expensive
the trip size increases. E-commerce is able to drive this   products, reducing volume through smaller baskets.
further, as consumers purchase multiple packs and take      Premiumization is now not only evident in the larger
advantage of promotions and E-commerce festivals,           upper tier cities, but has also reached the lower tier
reducing their offline trips. Premiumization trends are     smaller cities, as well as dispensable income increases
evident in the category, as well. Consumers now pursue      across city tiers. A changed lifestyle also results in
premium products to fulfill their needs of quality and      the rise of imported brands with disposable income
more advanced personal benefits. We see growing             increases. With the rise of fast moving local players like
needs for hand wash and machine wash is on the rise         Liushen (personal wash) and Adolph(haircare), bigger
as consumers want to go beyond core variants.               MNC giants lose share in China Mainland.

Liby has embodied the bigger basket size trend in
laundry liquid and rejuvenated the brand image,
focusing on communication and green, healthy homes.
Liby also invested in new product lines, the benefits
including a focus on natural plant-based ingredients for
its laundry lines that keep in mind the health and safety
trends in FMCG. The brand hired Huang Xiaoming and
Angelababy as spokesmen to attract new consumers,
specifically targeting the young family buyers.

ASIA BRAND FOOTPRINT 2019                                                                                          14
CHINA MAINL AND

BABO (斑布)
A NEW CATEGORY IN PAPER PRODUCTS.

                                Launched in 2014 by the Huanlong
                                Company, Babo is a Chinese brand
                                that produces unbleached paper. It
                                has since reached 10.6% of consumers
                                and is now the sixth paper brand in
                                China Mainland.
                                Babo is coined after the word “Bamboo,” since bamboo
                                fibre is the raw material used to make this product. Babo
                                is one of earliest brands to distribute unbleached paper,
     HOUSEHOLDS                 a relatively new concept in paper products. This product
     10.6%                      is unique compared to traditional paper because it
                                features zero additives and is eco-friendly, non-polluting,
                                and anti-bacterial. It meets the niche consumer’s need
     CRPs                       for health and safety, while significantly minimizing its
     +44%                       environmental footprint.

     RANK                       Babo has gradually expanded from Sichuan to all
                                of China Mainland through both online and offline
     19TH in Home Care Sector   channels. The company continuously invests in both
                                advertorial and in-store advertising to educate and
     KEY RECIPE FOR GROWTH      attract consumers.

     Health & Safety            Unbleached paper primarily attracts families with
                                children who strongly value health and safety. Babo
                                has successfully reached this target audience, who has
                                since upgraded to unbleached paper, threatening those
                                larger paper brands. Babo has increased its penetration
                                by 2.6 points over the last year and achieved a 44%
                                increase in CRPs.

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A S I A M A R K E T F E AT U R E S

YILI
YILI INCREASED CONSUMPTION OCCASIONS.

                                     Yili is the No.1 dairy company in
                                     China Mainland. It has continuously
                                     increased its penetration, now
                                     reaching    90.9%     of   Chinese
                                     households.
                                     To meet the growing demands for health and
                                     convenience, Ambrosial, the largest UHT yogurt sub-
                                     brand of Yili, launched PET and Tetra Top convenient
                                     package in 2017. Yili increased its investments in these
                                     two products in 2018 and promoted them in small format
          HOUSEHOLDS                 stores, such as small supermarkets and CVS locations,
          90.9%                      primarily sold in a single size. Ambrosial’s penetration
                                     has increased by 6.2 points over the last year.

          CRPs                       Furthermore, Yili launched packaged soymilk products
          1,275 million times        to attract consumers who are accustomed to drinking
                                     soymilk for breakfast. The soymilk product achieved
          RANK                       2.5% penetration for Yili in the past year.

          1ST                        As e-commerce grows rapidly in China Mainland, Yili
                                     has built up its own e-commerce team to expand online
          KEY RECIPE FOR GROWTH      business. Yili’s online channel achieved a 41% increase in
                                     penetration in 2018.
          Health
          Convenience                Yili continues to sponsor popular TV show programs
                                     and has invested strongly in social media, attracting an
                                     increased number of young consumers. Yili achieved a
                                     5% increase in CRPs.

ASIA BRAND FOOTPRINT 2019                                                                   16
CHINA MAINL AND

EXECUTIVE INTERVIEWS:                                                                     SPOKESPERSON:

Toly Food Co., Ltd.
                                                                                          FENG Guosheng
                                                                                          Marketing Director

KANTAR: What makes Toly Food Co., Ltd. (Toly for                  Mainland, constantly offering high performance-price
short) simply unique as a brand in the industry?                  ratio products to consumers as its development strategy,
Founded in 1995, Toly Food Co., Ltd. has evolved from a           while focusing on the category of fresh bread with a
small-sized local bakery into a public company over the           short shelf-life. Along with the advantages in terms of
past 24 years, emerging as an industry leader. Toly can be        brand, scale, technology, and so on, the company will
summarized as “staying focused and professional.” Toly            continue moving forward with the understanding that
has been committed to the fresh bread segmented area              massive potential can be tapped into. Toly will surely
with a short shelf-life period, aimed at growing big and          become the leader in the sector.
strong, rather than pursuing big in its overall development.
                                                                  INDUSTRY QUESTIONS
Thanks to the focused development over the past two               KANTAR: How do you think smaller brands can
decades or so, Toly has set itself apart in the industry as the   survive and grow?
brand of fresh bread with a short shelf-life period and has       Be they large or small, businesses need to have a
been understood, recognized, and trusted by consumers.            clear goal for market positioning. They must target a
Furthermore, a company must be “professional” to                  segmented market in the big industry, as well as seize
continuously progress. The company established its                the proper opportunity for growth and concentrate on
philosophy of “offering consumers high performance-price          product quality. Without high-quality products, all other
ratio.” On one hand, the company started with the source of       strategies are of little to no value. Regardless of how
its raw materials, selecting leading suppliers both at home       small a company is, it should have the goal and belief
and abroad to ensure product quality. On the other hand,          that it can last for decades to come. Only then can
the company targeted developed global bakery markets in           smaller brands give their products the proper attention
Europe, America, Japan, etc., regularly introduced advanced       and craftsmanship needed.
equipment and technologies, and built the R&D team itself,
with a goal to deliver products that meet the international       KANTAR: What kind of consumer behavior change
standards and the demands of Chinese consumers. The               surprised you over the past five years?
above two factors contribute to the continuous development        With further development of our economy, the
of Toly, which is now the leading company in the sector of        consumption power and age structure of consumers have
Chinese fresh bread with a short shelf-life.                      changed tremendously. Consumption began to shift from
                                                                  the initial focus on product functionality to product quality.
KANTAR: Where is your biggest opportunity for                     Consumers are willing to pay more for product quality. This
growth, be it a region, a category or a strategy?                 trend is evolving at an astonishing rate.
Answer: With regard to opportunity for growth in the
big picture, the massive Chinese consumption market               KANTAR: What’s your thought about the market
provides many opportunities. Since the beginning of the           development and consumer behaviors in the next
Reform and Opening to present day, China Mainland                 five years?
has demonstrated tremendous accomplishment                        Economic development naturally results in an upgrading
over the past four decades. Such dramatic economic                of consumption. When consumers focus more on
development has improved the disposable income of                 product quality and the brand, the entire sector will shift
consumers, who are capable of meeting their basic                 from fragmented regional competition to branded
living needs. And as the consumption power increases              national competition. In other words, the sector will be
exponentially, it creates opportunities for huge progress         increasingly more concentrated with the improvement
in the FMCG sector.                                               of product quality. And with the change in consumer
                                                                  age structure, there will be more personalized demands.
From a business perspective, a proper strategy catered            Furthermore, enterprises themselves need to constantly
to development is necessary. Toly has been dedicated              research and optimize the product structure to adapt to
to becoming the largest bread company in China                    consumer demands for personalized products.

17
A S I A M A R K E T F E AT U R E S                                     CHINA MAINL AND

          “In 2018, China remains one of the most dynamic but
        challenging markets in the world where growth is more
      difficult to secure. Leading brands will have to constantly
innovate with a high level of agility to stay ahead of the other
  brands. The brand footprint ranking also shows that brands
  will be expected to satisfy the rapidly-changing demand for
                           quality life, efficacy, and experiences.”

                                                     Jason Yu
          Managing Director, Kantar, Worldpanel Division,
                                          Greater China

ASIA BRAND FOOTPRINT 2019                                                           18
03
ASIA MARKET FEATURES

INDONESIA

19
A S I A M A R K E T F E AT U R E S

Top 10 most chosen brands in CRP                                                                       URBAN
                                                                                  Penetration %         Consumer
  2018 Rank Brand                                                 CRP (M)             2018             Choice 2018
            1 Indomie                                               1,241               97.5               42.9
            2 So Klin                                                 771               94.7                27.4
            3 Kapal Api                                              673                83.3                27.2
            4 Royco                                                   618               85.0               24.5
            5 Mie Sedaap                                              581                87.1              22.5
            6 Frisian Flag                                           538                88.7               20.5
            7 Indofood                                                481               88.4                18.3
            8 Molto                                                   451               85.2                17.9
            9 Masako                                                  441               71.5               20.8
           10 Lifebuoy                                                418               91.2                15.5

The household’s purchase or penetration rate plays a pivotal role in driving a
brand’s competencies.
The commonality of these top 10 brands is that they are     • Instant noodle has become a significant part of the
high shopper-based, with more than 70% of Indonesian          Indonesian community’s daily life. Aside from the
urban households having purchased from these top 10           familiar taste, affordable price and vast nationwide
brands. High Consumer Reach Points are a reflection           distribution also makes instant noodle an all-
of the brands popularity and how close it is to the heart     Indonesian favorite. Another instant noodle brand,
of the Indonesian shopper. It is important to increase        Mie Sedaap, secured the 5th position.
buyers in order for any brand to improve its ranking, as    • Playing in several categories is also one of the brand
penetration is the ultimate key to drive growth.              strategies to achieve strong brand awareness. So
                                                              Klin managed to attain the 2nd place in the ranking.
Several highlights of Brand Footprint in Urban Indonesia:     Strong distribution and the adaptability to spot
• The study also reveals that local brands manage             the right promotion strategy are the main factors
   to establish a stronger presence, with 60% of              that reinforced So Klin to become the most chosen
   the top 10 brands coming from local or regional            homecare brand in Indonesia.
   manufacturers. Local players’ ability to adopt fast      • Frisian Flag and Lifebuoy also maintained their rank
   to the latest consumer trends enable them to be            within the top 10 brands, credited to their strategy of
   more productive in launching new innovations into          playing in several categories in their respective sectors.
   the local market.                                        • Kapal Api retained its 3rd place position in the brand
• The food category dominates the top 10 ranking, while       fooprint, as well as its top spot as the most chosen
   household products, beverage, personal care and dairy      beverage brand in Indonesia. Kapal Api has shown
   top players manage to secure top positions, as well.       how utilizing today’s growing digital media platforms
• Indomie continues to be the most chosen FMCG                has helped the brand in maintaining engagement
   brand by consumers in Indonesia for 7 consecutive          with their audience.
   years. Almost all Indonesian households have             • Food additives is still popular and one of the most
   purchased this brand at a purchase rate of around 3        chosen categories. Royco and Masako maintain their
   - 4 times per month. Besides Indomie, its sister brand     positions within the top 10 brands, as they support
   Indofood, which offers a wide variety of seasonings,       practicality in cooking.
   sauces, and cooking stock, managed to secure the         • Molto holds its 8th position, supported by brand
   7th rank position, with a positive consumer reach          communication (especially on perfume fabric
   point at around 11%.                                       conditioner), as well as its portfolio extension.

ASIA BRAND FOOTPRINT 2019                                                                                            20
IND ONESIA

Top 10 growing brands in CRP                                                                      URBAN
                                                                              Penetration %       Consumer
     2018 Rank Brand                                            CRP (M)           2018           Choice 2018
           46 Sedaap                                               126              54.5               7.8
           23 Ekonomi                                              257              54.9              15.8
           48 Nuvo                                                 120              53.3               7.6
           32 Gery                                                 183              69.4               8.9
           29 Abc Heinz                                            226              80.6               9.5
            2 So Klin                                              771              94.7              27.4
           16 Energen                                              368              84.4              14.7
            7 Indofood                                             481              88.4              18.3
           19 Daia                                                 324              74.2              14.7
            11 Sunlight                                            413              92.8              15.0

One of the drivers of these growing brands is the ability to either increase
the shopper-based penetration or to encourage shoppers to purchase more
frequently. Several rising brands are also optimizing their brand communication
to engage with their consumers.
Brands such as Nuvo and Abc Heinz, for example, have      On the other hand, Abc Heinz took the currently gender
emphasized the meaning behind their brand by creating     equality topic and applied a very subtle, yet impactful
more moments for consumers to engage with the brand.      twist to promote their sauce products. Instead of the
Nuvo, an anti-bacterial soap brand, essentially engaged   woman in the family cooking at home, their campaigns
with their family target audience by educating them on    showed how men can be the ones cooking at home.
the importance of outside playtime for their children.
And when it comes to keeping the children clean and       In addition to brand communication, Gery grew
safe from bacterial germs, Nuvo is there to help.         impressively in the crowded category by executing
                                                          various variants that target a more mature audience
                                                          compared to their initial products.

21
A S I A M A R K E T F E AT U R E S

Indofood (Indomie)
THE MOST ICONIC INDONESIAN BRAND.

                                     Indomie is an instant noodle brand that
                                     was introduced five decades ago by PT
                                     Indofood Sukses Makmur. Today, Indomie
                                     is not only the most iconic Indonesian
                                     brand, but also globally synonymous
                                     with being the instant noodle brand.

                                     The first Indomie product introduced to the Indonesian market
                                     was Indomie Kuah Rasa Kaldu Ayam (Indomie Chicken Flavor
          HOUSEHOLDS                 Noodle Soup), which fits well with the Indonesians’ taste palate.
          97%                        In 1982, Indomie   launched its second flavor Indomie Kuah
                                     Rasa Kari Ayam (Indomie Chicken Curry Flavor Noodle Soup),
                                     which was received very well by the Indonesian market. In 1983,
          CRPs                       Indomie maintained the momentum by launching the iconic
          1,241 milion times         Indomie Mi Goreng (Fried Noodles).

          RANK                       New product innovation is one of Indomie’s core strategies to
                                     excite Indonesian consumers. The recent launch of Indomie
          1ST                        Goreng Aceh and Indomie Hypeabis Ayam Geprek received
                                     a very positive response from the consumers. Indomie’s
          KEY RECIPE FOR GROWTH      innovative expansion also occurs in the premium segment.
                                     The launch of Indomie Salted Egg as part of Indomie’s
          Convenience                Premium Collection in 2018 went viral and was sought after
          Happiness                  by many people.

                                     The brand is proud to be purely Indonesian, a feeling that is
                                     evident throughout their numerous campaigns. Their TV and
                                     video-based ads have continuously emphasized their presence
                                     throughout Indonesia, along with the multiple events in which
                                     consumers can enjoy the signature taste of Indomie. A prime
                                     example of this is their “Dari Sabang Sampai Merauke (From
                                     Sabang to Merauke)” ad that highlighted the many people and
                                     occasions for Indomie across the archipelago.

                                     These factors combined with Indomie’s strong distribution
                                     across all retail channels has allowed Indomie to maintain
                                     its position as the most iconic brand in Indonesia, with more
                                     than 97% penetration and the most frequently chosen brand
                                     (3-4 times a week). Indomie has even expanded globally,
                                     with a presence in countries such as Malaysia, Vietnam, the
                                     United States, and many more.

ASIA BRAND FOOTPRINT 2019                                                                          22
IND ONESIA

  “Despite a stagnant FMCG market, the Indonesian economy
         has improved in the past year, presenting a wealth of
       opportunities for brands. The Indonesian consumers are
     changing in a way that makes them more discerning and
 rational in regards to FMCG consumption. As a result, brands
      cannot expect growth to happen organically, rather they
                            must fight to stand out and earn it.

           Brands must also seek to remain relevant in the face of
            emerging trends. Indonesians are increasingly leaning
             towards technology and convenience when shopping
           for FMCG, as well as seeking more meaningful reasons
            to choosing a particular brand. With the shift in trade
       channels further encouraged by minimarkets and growing
         e-commerce, consumers today are faced with more and
           more choices when it comes to shopping. This is both a
      challenging and exciting time for FMCG, with opportunities
     abound, as shown by the top brands in this Brand Footprint.
         I hope to see further innovations and efforts in the ever-
        present challenge to stay among the top chosen brands.“

                                             Venu Madhav
General Manager, Kantar, Worldpanel Division, Indonesia

23
03
ASIA MARKET FEATURES

KOREA

ASIA BRAND FOOTPRINT 2019   24
A S I A M A R K E T F E AT U R E S                                                                 KO R E A

Total FCMG
                                                                             Penetration %       Consumer
  2018 Rank Brand                           CRP (M)         CRP Growth           2018           Choice 2018
           1 Ottogi                           95.2               2                99.2                5.5
           2 Masinnen Milk                    81.7             -12                90.7                8.2
           3 Seoul Milk                       81.6               7                52.1                7.4
           4 DONGWON                          71.5               2                57.4                4.4
           5 Beksol                           65.2               2                85.4                4.0
           6 Chungjungone                     64.2               9                85.2                4.1
           7 Will                             56.5             -22                82.2              30.0
           8 Jinramen                         47.3              10                62.1                4.0
           9 Ottogi ramen                     46.8              -2                62.1                3.6
          10 Sowanamoo                        44.5               7                67.9                4.0

The following keywords are affecting consumer behavior in the 2019 Korea
Market: Diversity, Expansion, Eco-Friendly, Personal Care

They appear in every sector of the FMCG market and the following CRP
rankings by sectors implicit in the market trend.

DIVERSITY IN CONSUMER TOUCH POINTS.
As brands offer a diverse range of products with        components, such as health, pleasure, and new
segmented usage, even outstripping consumer needs,      targets.
consumers are becoming increasingly demanding.
Therefore, sustainable growth is only attainable when   In the food market, exponential growth is still evident
brands expand consumer touchpoints from various         in the HMR category, leading the market trend through
perspectives.                                           product innovation. A wide variety of HMR products are
                                                        paying off in the market. In the instant noodle category,
The long-tail trend in the processed food market        for example, Sinramen was once the #1 steady-seller,
is a prime example of diversity, in addition to the     now overrun by the current first place Jinramen.
premiumization trend, in which brands are launching     Furthermore, typical instant noodles with soup types
more target-specific products that consider health,     have demonstrated a negative growth rate (MAT18Q3,
age, and diet. In the food market, convenience          -4.2%), while instant noodles that feature exquisite
and taste are the foundational components of            flavors are growing along with the diversification of
food products. Now, it is time to analyze other         ramen (MAT18Q3, +11%).

25
A S I A M A R K E T F E AT U R E S

                                                                        Food
TOTAL FOOD
                                                   Consumer   Top-ranked brands are actively
2018                   CRP     CRP   Penetration    Choice    reinforcing the HMR product line.
Rank Brand             (M)    Growth   % 2018        2018     CJ, for example, is expanding its
    1 Ottogi           94.9     2       90.7         5.5      CRP with ‘Bibigo,’ which ranked #2,
                                                              in addition to ‘Beksol,’ which is not
    2 Beksol           65.2     2        85.2        4.0
                                                              on this chart but ranked #7. These
    3 Chungjungone     64.2     9        82.2        4.1      changes are further accelerating
    4 DONGWON          57.9     0        81.1        3.7      due to a strong online presence
                                                              (ex. CJ has increased marketing
    5 Jinramen         47.3    10        62.1        4.0      investments to expand its online
                                                              position, Ottogi has launched its
                                                              own online brand mall ‘Ottogi
                                                              Mal,’, etc.) and the categories that
                                                              previously led the growth of HMR
                                                              (frozen pizza, instant rice-‘Hetban’)
                                                              have shown signs of growth decline
                                                              due to new products.

                                                                        Beverage
TOTAL BEVERAGE
                                                   Consumer   Maxim ranked a close first in CRP
2018                   CRP     CRP   Penetration    Choice    due to the recent launch of a new
Rank Brand             (M)    Growth   % 2018        2018
                                                              product. With a slight CRP increase,
    1 Maxim            31.5     3        56.3        2.9      Maxim is expected to maintain
        Coca-Cola/                                            its top position for a while. Jeju
    2                  30.0    10        39.3        4.0      Samdasoo, the #1 bottled water
        Coke
                                                              brand, has also risen to the top 4
    3 Chilsung Cider   24.1     1        40.3        3.1
                                                              due to the recent influx of news
    4 Jeju Samdasoo    18.9     1        30.5        3.2      buyers.
    5 Delmonte         18.8    -4        40.3        2.4

ASIA BRAND FOOTPRINT 2019                                                                      26
KO R E A

EXPAND YOUR SALES/MARKETING PATH AND
TARGETING SCOPE.
Expansion is not limited to purchase journey, but also     growth of independents and families of two, young
refers to the expansion of targeting scope.                independent households, as well as senior households
                                                           with one or two have emerged as new leading groups.
As a result of the steady growth in mobile shopping via    Young independents demonstrate a frequent purchasing
smartphones, consumer purchase is rapidly migrating        pattern, while senior households spend a substantial
from offline to online. Additionally, consumer targeting   amount of money per purchase. These two trending
scope has broadened. In addition to the demographic        groups are the emerging targets.

TOTAL DAIRY                                                                            Dairy

                                                            Consumer
 2018                       CRP      CRP   Penetration       Choice          The dairy market is struggling
 Rank Brand                 (M)     Growth   % 2018           2018
                                                                             with a massive reduction in
     1 Masinnen Milk        81.7     -12         52.1          8.2           overall       milk      consumption.
     2 Seoul Milk           81.6       7          57.4         7.4           Nevertheless, ‘Seoul Milk,’ which
                                                                             is     continuously     strengthened
     3 Will                 56.5     -22           9.8        30.0           through brand communication
     4 Sowanamoo            44.3       8         58.1          4.0           initiatives (especially through TVC
                                                                             advertising), showed improved CRP
     5 Yakult               37.2     -15          17.4         11.2          compared to the previous year.
                                                                             Regardless, it is viewed as weak in
                                                                             terms of purchase volume.

                                                                             While major brands appear to
                                                                             be showing a decreased CRP,
                                                                             Dongwon’s      ‘Sowanamoo’  and
                                                                             ‘Denmark’ ranked #4 and #6
                                                                             respectively due to enforced
                                                                             promotion activities and new
                                                                             product line introductions.

                                                                             Manufacturers of major dairy
                                                                             brands continue to focus their efforts
                                                                             on diversifying their businesses to
                                                                             navigate through to the shrinking
                                                                             ‘traditional’ dairy market (cheese,
                                                                             processed meat, cereal, HMR,
                                                                             franchise, etc.).

27
A S I A M A R K E T F E AT U R E S

ECO-FRIENDLY IS NOW AN ESSENTIAL ELEMENT FOR
FMCG BRANDS.
As many of the chemical, fine dust pollution, and         in the FMCG market, especially in personal or home
other related issues have been on the population’s        care. When the fine dust issue swept over the whole
minds recently, they have become the most influential     country, body wash, body moisturizing, health food, and
exogenous variables and of serious environmental          even RTD tea categories grew rapidly. As a result, “eco-
concern. Therefore, it is hardly an exaggeration to say   friendly” appears to be fixed in the driving force of brand
that these environmental elements are now embedded        marketing.

TOTAL HOME CARE (HAIR & BODY EXCLUDED)                                                   Home Care

                                                           Consumer           Overall CRP recently decreased due
 2018                       CRP     CRP   Penetration       Choice            to the rise of online purchases and
 Rank Brand                 (M)    Growth   % 2018           2018
                                                                              large volume issues in the home
     1 Perio                11.7      -1        40.0           1.5            care market.
     2 Saffron             10.4       -1         29.0          1.9
                                                                              Major      brands    that    produce
     3 2080                 9.1        1         32.3          1.5            relatively highly concentrated fabric
     4 Downy                6.8       -1         20.9          1.7            softener ranked at the top. Perio
                                                                              and 2080 could join the top 5 with
     5 Pigeon               5.9      -14         18.8          1.6            a new product performance that
                                                                              highlights a natural concept.

ASIA BRAND FOOTPRINT 2019                                                                                         28
KO R E A

THE ACTIVE PERSONAL CARE TREND IS ONE OF THE
GROWTH LEVERS IN THE PERSONAL CARE MARKET.
The number of people who actively invest in self-                                 in the personal care market, as consumers now actively
improvement and hobbies are growing due to an                                     join cultural centers, home training, home care, home
increase in number of households with one or two                                  beauty and night sport groups, as well as increase their
people and the enactment of the 52-hour work week                                 consumption in categories such as home beauty devices,
policy. Potential growth opportunities are ever-present                           health functional food, and anti-hair loss products.

TOTAL SKIN CARE                                                                                                      Skin Care

                                                                                                          As purchase trends continue to shift
                                                                                     Consumer
 2018                                   CRP         CRP   Penetration                 Choice              to small and medium brands in the
 Rank Brand                             (M)        Growth   % 2018                     2018               skincare market, so does the decline
                                                                                                          of originally influential brands. One
        1 Innisfree                     11.3        -11.1              24.4               3.0             brand* in particular was most affected
                                                                                                          by this market change. As shown from
       2 The Face Shop                   5.7        -31.2              17.3               2.2
                                                                                                          CRP, Innisfree and The Face Shop have
       3 Sulwhasoo                       5.1         -6.9              12.7               2.7             remained as #1 and #2 respectively, but
                                                                                                          show a double-digit decline. Missha,
       4 Atomy                           4.5          0.4               9.3               3.1             which conducted extensive rebranding,
                                                                                                          actively promoted its flagship product
       5 Missha                          4.0          0.8              13.2               2.0             violet ampule and demonstrated
                                                                                                          CRP recovery due to the elderly. Dr.
                                                                                                          G revealed explosive CRP growth,
                                                                                                          ranking #9, credited to its expansion of
                                                                                                          touchpoints in diverse product lines and
                                                                                                          channels by age group.

TOTAL MAKEUP                                                                                                         Makeup
                                                                                     Consumer
 2018                                   CRP         CRP   Penetration                 Choice              Even in the makeup market, One
 Rank Brand                             (M)        Growth   % 2018                     2018               Brand is struggling. As diverse brands
                                                                                                          emerge in the market, Etude, The Face
        1 Etude                          7.2        -17.0              17.9              2.6              Shop, and Aritaum demonstrate a
       2 Innisfree                       6.5          0.8             20.3               2.1              notable CRP decline, all three of which
                                                                                                          had previously attracted a substantial
       3 Missha                          5.3         -4.1              18.7              1.9              number of consumers. Innisfree and
                                                                                                          Missha have been preeminent, thanks
       4 The Face Shop                   4.7       -28.1               16.7              1.8              to their delicately applicable natural
                                                                                                          eyebrow products. The major brands
       5 Aritaum                         3.9       -32.0               12.9              2.0              that have shown CRP growth are MAC,
                                                                                                          Clio, and Kissme, each ranking #6, #9,
                                                                                                          and #10 respectively in the makeup
                                                                                                          category. Luxury brands, or brands
*One brand refers to one brand shops, which are road shops selling one cosmetic brand or one particular   that specialize in specific products, are
cosmetic brand                                                                                            chosen by consumers.

29
A S I A M A R K E T F E AT U R E S

Clio
PROFESSIONAL MAKE-UP BRAND, PIONEERING KOREAN
MASSTIGE COSMETICS MARKET.
                                               Clio is a professional makeup
                                               brand, reaching 10.3%* of Korean
                                               consumers.
                                               Clio has recruited buyers in millennial generations
                                               between 15 and 35 years of age through its sophisticated
                                               packaging and high quality products that are
                                               differentiated from other Masstige cosmetics brands.

                                               In 1997, Clio started as a brand created by a professional
                                               makeup artist and, since then, has gained 20 years of
                 CONSUMERS                     makeup expertise.
                 10.3%                         In 2015, Clio launched “Tinted Tattoo Kill Brow”,
                                               expanding the eyebrow market that was very niche
                 CRPs                          at the time. Hero SKUs consecutively succeeded in
                 +15.4%                        diverse categories- Eye shadow, Cushion, and Lipstick.
                                               Bold naming such as “Kill cover, Virgin Kiss, Nudism,
                 RANK                          Rouge Heal,” and diverse color/texture variations have
                                               satisfied millennial generations, sustaining 2-year CAGR
                 19TH in total Beauty Market   of +19.2% in Y2016-Y2018 consumer reach points.

                 KEY RECIPE FOR GROWTH         Clio has continued expanding in category, channel, and
                                               age. Although eye makeup is the largest traffic driver, Clio
                 Convenience                   continues to enhance face makeup due to its relatively
                 Happiness                     higher average spending per traffic. Furthermore, Clio

                 Shopping experience           recently entered the TV home shopping channel with
                                               cushion to secure buyers older than 35 years.

                                               Due to its strength in the makeup market, Clio has
                                               diversified its brand portfolio to meet the rising demands
                                               in the beauty industry with brands such as Goodal, a
                                               natural skincare brand, and Peripera, a makeup brand
                                               targeting young millennials. Along with two other
                                               brands, Clio Company gained a 2-yr CAGR of +29.2% in
                                               Y2016-Y2018 consumer reach points.

*Data from Beauty panel

ASIA BRAND FOOTPRINT 2019                                                                              30
KO R E A

EXECUTIVE INTERVIEWS:

Daesang Corporation
KANTAR: What makes Daesang Corporation (Daesang             while utilizing their strengths and essence, to achieve
for short) unique as a brand in the industry? And where     sustainable growth.
is your biggest opportunity for growth (this could be a
region, category or strategy)?                              KANTAR: How do you think consumers will continue
The company has differentiated itself from other            to evolve in their shopping behavior and needs?
competitors by focusing its extraordinary efforts on food   Consumers will demand more ‘fresh healthy food’ that
that connects nature and human health. Currently, most      can be easily consumed on the go, as well as ‘delicious
general food product companies, including Daesang, are      HMR’ that can be cooked more easily at home.
looking for growth opportunities in the HMR category as
consumers are demanding more for healthy food that          KANTAR: Has the growing popularity of e-commerce
is convenient. In our case, we are focusing on ‘delicious   disrupted you at all and do you anticipate a
health’ as an ideal brand value above all else in the HMR   significant change over the next 5 years?
category.                                                   The rapid growth in the ecommerce market leaves
                                                            us with two huge implications. First, as consumers of
KANTAR: Which consumer trend has impacted you               traditional channels quickly migrate to online channels,
the most in the last 2-3 years?                             additional investments and resources are needed to
Due to environmental issues, such as fine dust and          establish expertise in ecommerce-based retail channels.
water pollution, health-oriented and social welfare-        Since ecommerce sales grow by two digits every year, we
oriented aspects are affecting consumption behavior.        are investing in various ecommerce-based marketing
Furthermore, in an unbalanced social environment            resources such as product guidance, advertising, and
where the number of double income families is growing,      CRM.
economic growth is stagnant, aging is becoming
a big concern, and a 52-hour workweek policy is             Secondly, we can see from ecommerce consumption
being implemented, people are seeking a balance             behavior that consumers compare various brands in one
between their work and life even more. Thus, the            category and purchase them through careful selection.
consumption for “me” trend is growing, as part of the       Therefore, it is impossible to satisfy the diverse needs of
consumer trend ‘Small but Certain Happiness,’ which         consumers with only two or three brands. In traditional
connotes ‘present,’ ‘trivial,’ and ‘frequent happiness’     channels, two or three brands with high recognition
consumption behavior.                                       monopolize most market share, as well as effectively
                                                            defend market entry against other companies and
KANTAR: What do you think the next 5 years will look        allow for efficient cost management by managing
like for brands and shoppers?                               facing control of their own products. However, unlimited
We won in the 3rd growth lever. With the recent low         competition of dozens or even hundreds of brands is
growth rate trend of single households, consumers           lurking within the E-commerce market, which can be both
drinking alone at home is one of megatrend. It meets        an opportunity and a threat. Currently, we have a high
the consumers’ need for convenience and the economic        brand awareness, taking a favorable market position. But
spending pattern simultaneously. We pioneered the           if consumer needs and taste becomes more diversified
drinking snacks category within HMR. Chungjungone           and categories become more segmented, price and traits
Anjuya is a brand that we launched and the NO.1 brand       of individual products will be the key buying factor, rather
in the drinking snacks HMR market.                          than brand awareness.

KANTAR: How do you think smaller brands can                 KANTAR: What do you think brands can do to better
achieve sustainable growth?                                 understand and engage their shoppers?
The value that every brand must pursue moving forward       To understand and reflect consumer lifestyle and social/
is changing rapidly to be more convenient. Consumer         cultural trends, efforts are needed to communicate and
lifestyle is quickly changing and evolving. Therefore,      experience consumers rather than just observing them
brands must transform to compliment convenience,            through a narrowed, food market point of view.

31
A S I A M A R K E T F E AT U R E S                                    KO R E A

  “Both the rate of change in the Korean market and the level
 of development complexity seem to be unrivaled. In addition
   to the changes in retail landscape (both offline and online)
     and the increasing complexity of the media market, rapid
     changes in consumer lifestyles are bringing an awareness
  to brand marketers like never before in regards to to seeking
opportunities to build a better brand position in the market. In
  this kind of situation, it is more important to rightly look into
    “where we are” compared to competitors in such market.”

                                                 Francis Oh
     General Manager, Kantar, Worldpanel Division, Korea

ASIA BRAND FOOTPRINT 2019                                                   32
03
ASIA MARKET FEATURES

MALAYSIA

33
A S I A M A R K E T F E AT U R E S

Top 10 most chosen brands in CRP
                                                                                Penetration %        Consumer
  2018 Rank Brand                                                CRP (M)            2018            Choice 2018
            1 Maggi                                                 43                86.2               8.5
            2 Milo                                                  34                84.8                7.0
            3 Marigold                                              21                65.1               5.5
            4 Dutch Lady                                            21                58.2               6.1
            5 Ayam                                                  18                58.2               5.3
            6 Adabi                                                 17                50.7               5.7
            7 Babas                                                 15                45.8               5.8
            8 Munchys                                               15                64.4               4.1
            9 Colgate                                               15                66.8               3.9
           10 Nestle                                                14                61.7               3.9

Maggi:                                                     Ayam:
Extremely successful innovations, especially the           Managed to turn a crisis into opportunity where several
Maggi Pedas Giler range. Maggi succeeds mainly by          China manufactured canned sardines were found
establishing more occasions while retaining the same       to have been contaminated with worms and overall
amount of shoppers. Categories such as culinary have       confidence in canned food collapsed. Ayam diverted all
also been a strong pillar that drives more occasions for   their communication focus into emphasizing that their
Maggi, especially with the all-in-one seasoning.           products are proudly manufactured in Malaysia and
                                                           played the right card of confidence. As a result, they’ve
                                                           regained usages from their existing users.

ASIA BRAND FOOTPRINT 2019                                                                                         34
M A L AY S I A

Top 10 growing brands in CRP
(ABOVE 5 MILLION CRP BASE)

                                                                                  Penetration %         Consumer
  2018 Rank Brand                                                 CRP (M)             2018             Choice 2018
            1 Fernleaf                                                8                 29.5                4.0
            2 Seri Murni                                              5                 32.4                 2.7
            3 Oriental                                                6                 30.2                3.1
            4 Mr. Potato                                              8                 40.8                3.3
            5 Nestum                                                  5                 31.2                 2.7
            6 Mie Sedaap                                              6                 32.9                3.1
            7 Breeze                                                  6                 34.5                 2.9
            8 Prego                                                   5                 29.8                 2.8
            9 Jalen                                                  10                 34.4                4.5
           10 Dettol                                                  5                 34.3                 2.5

Fernleaf:                                                   Prego:
Effective promotions are the primary reason behind          Banking on the growing acceptance of home-cooked
Fernleaf’s success. By playing the right promotion          pasta among Malaysians, Prego has ensured that the
around their larger pack sizes, they were able to sway      price point always works in their favor. Additionally, Prego
some shoppers and lock them down with a larger trip.        has innovated on children-friendly pasta variances,
                                                            which also helped win the brand penetration.
Mr. Potato:
As a local manufacturer, Mamee Double Decker,
manufacturer of Mr. Potato, has always been quick and
effective in their NPD. 2018 was no exception, with their
Sweet Potato Chips that hit the Malaysians’ sweet spot,
quite literally, giving them a boost in penetration and
established occasions.

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